Wizz Air Q1 FY26 profit down 38% amid GTF engine issues and rising costs
Hungarian airline Wizz Air has reported a roughly 38% decrease in operating profit in the first quarter of the 2026 financial year, citing increased costs and GTF engine-related groundings.
In its unaudited financial results, released on July 24, 2025, the airline announced that its operating profit fell to €27.5 million in Q1 FY26, down from €44.6 million during the same time last year.
The airline attributed this decrease to higher airport, handling and en-route charges, depreciation costs, and GTF engine-related groundings.
Wizz Air reported a 2.1% increase in total revenue per available seat, reaching €4.41. Ticket revenue grew by 2.5% to €2.47, while ancillary revenue rose by 1.6% to €1.94 year-on-year.
Net profit increased to €38.4 million, impacted by an “unrealised foreign exchange tailwind year on year.” The total cash balance grew by 13.2% from March 2025, totaling €1,964.8 million, and net debt decreased by 5.1% to €4,705.4 million.
The airline’s EBITDA climbed 9.3% to €300.2 million, with margins improving to 21%. The available seat kilometers (ASK) capacity saw an 11% rise in Q1 FY26 compared to the same period last year.
The low-cost carrier announced that it transported 17 million passengers in Q1 of FY26, up from 15.3 million it carried in Q1 of FY24.
Delivery backlog grows despite GTF issues
During Q1 FY26, Wizz Air took delivery of 10 new A321neo aircraft and a single new A321XLR aircraft. The airline said it redelivered six A320ceo aircraft. This brought the carrier’s total fleet to 236 aircraft: 31 A320ceos, 41 A321ceos, six A320neos, 157 A321neos, and a single A321XLR.
As of June 30, 2025, Wizz Air delivery backlog comprised a firm order for 243 A321neos and 46 A321XLR aircraft, totaling 289 aircraft.
However, as of June 30, 2025, Wizz Air had 41 aircraft grounded due to GTF engine-related inspections. The average number of grounded aircraft for FY26 is projected to be 35, which is an improvement compared to the 44 average from the previous fiscal year.
“We are simultaneously pursuing all avenues to lift the fleet that is grounded due to engine supply chain issues and retiring early as many A320 CEO family aircraft as is feasible,” said Wizz Air CEO József Váradi. “This will require further modification to our aircraft delivery schedules to reduce our growth rate to levels that support the demand this revised network will require.”
Strategic shift: Wizz exits Abu Dhabi venture
On July 14, 2025, Wizz Air announced a strategic realignment and withdrawal from its Wizz Air Abu Dhabi (WAAD) joint venture.
The airline explained that the decision was driven by faster-than-expected engine degradation in harsh environmental conditions, combined with limited engine shop visit capacity, geopolitical disruptions, and the inability to secure access to key markets as originally planned. These factors, Wizz said, undermined the strategic rationale for maintaining the operation.
To mitigate the impact, four A321neos will be redeployed to Europe once re-registered, while eight A320ceos will remain parked except during peak holiday periods. The company expects minimal incremental impact on FY26 results, with financial benefits anticipated from FY27 onward.
According to Wizz Air, the exit will eliminate a structurally loss-making unit, improve overall fleet utilization, and allow the group to refocus management resources on profitable markets.
“Planes will be migrated to Europe where they can generate better financial performance,” the airline stated.
Looking ahead at Q2 FY26
“Our management team has demonstrated a high degree of adaptability in recent years when faced by severe challenges, and this year will likely continue to call on that strength as we refocus our business,” Váradi concluded.
The airline predicts that for Q2 FY26, capacity (ASKs) will increase in the high single digits year-over-year, while load factors are expected to stay the same after a previous rise of over 2% points.
Revenue per available seat kilometer (RASK) is also anticipated to remain unchanged year-over-year. Meanwhile, cost per available seat kilometer (CASK) is projected to decrease fuel costs by high single digits, with non-fuel unit costs showing an improvement compared to Q1. The post Wizz Air Q1 FY26 profit down 38% amid GTF engine issues and rising costs appeared first on AeroTime.
Hungarian airline Wizz Air has reported a roughly 38% decrease in operating profit in the first quarter of…
The post Wizz Air Q1 FY26 profit down 38% amid GTF engine issues and rising costs appeared first on AeroTime.